Under the direct write-off method

Assignment Help Financial Management
Reference no: EM131185271

Under the direct write-off method, the entry to write off an uncollectible account of $3,400 includes a:

a. debit to Accounts Receivable for $3,400.

b. credit to Uncollectible-Account Expense for $3,400.

c. debit to Uncollectible-Account Expense for $3,400.

d. debit to Allowance for Uncollectible Accounts for $3,400.

Reference no: EM131185271

Questions Cloud

Short-term planning and long-term planning : Please provide specific examples of at least three internal and/or external conditions within a company that could be related to the theory of price. How might this affect daily operations? Short-term planning? Long-term planning?
Uses percentage-of-sales method to estimate uncollectibles : Bigg and Talle Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $5,000,000 and management estimates 2% will be uncollectible. Allowance for Doubtful Accounts prior to adjustme..
How much are current assets-company quick ratio : A firm’s balance sheet contains $320 of cash, $2,000 of fixed assets, $1,380 of accounts receivable, $780 of accounts payable, $500 of inventory, and $1,000 on a revolving line of credit. Assuming that list contains all of the company’s assets and li..
Observe news reports about financial markets : If you observe news reports about financial markets for some time, you will notice that investors pay a tremendous amount of attention to economic data releases from thee government. Why do you think this is the case? What are investors concerned abo..
Under the direct write-off method : Under the direct write-off method, the entry to write off an uncollectible account of $3,400 includes a:
Determine the present value of the lease payments : Air atlantic (AA) has been offered a 3-year old jet airliner under a 12-year lease arrangement. The lease requires AA to make annual lease payments of $500,000 at the beginning of each of the next 12 years. Determine the present value of the lease pa..
Consumer protection laws have proliferated : In the 20th and 21st century, consumer protection laws have proliferated. Do you think that these laws have become overly burdensome for businesses to comply with?
How much of first payment is interest only : Suppose you are buying your first condo for $150,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 4.5% nominal interest rate, with the first payment due..
What was the annual change in the average selling price : In October 2012, the average house price in the United States was $208,600. In October 2004, the average price was $282,300. Required: What was the annual change in the average selling price?

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the rate of return on the atlas mower

Don Garlits is a landscaper. He is considering the purchase of a new commercial lawn mower. Two machines are being considered, the Atlas and Zippy. The table shown below provides all necessary information for the two machines. The minimum attractive ..

  What is the degree of operating leverage

Consider a four-year project with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $16; fixed costs = $140,000; quantit..

  Financed entirely with equity

The Dart Company is financed entirely with equity. The company is considering a loan of $1.75 million. The loan will be repaid in equal principal installments over the next two years, and it has an interest rate of 8 percent. According to MM Proposit..

  What are the disadvantages of issuing preferred stock

Preferred stock is not a common source of financing for most firms. However, it should be ignored as a potential source of capital. What is preferred stock and why is it beneficial to corporations? What are the disadvantages of issuing preferred stoc..

  What is the cost of the lease

You agree to lease a car for 5 years by paying $300 per month. You are not required to pay any money up front or at the end of your agreement. Your opportunity cost of capital is 6% APR (Annual Percentage Rate). What is the cost of the lease (Present..

  What advantage of the corporate form of organization

One thing lenders sometimes require when loaning money to a small corporation is an assignment of the common stock as collateral on the loan. Then, if the business fails to repay its loan, the ownership of the stock certificates can be transferred di..

  Contributed property with a fair market value

Myself and three of my acquaintances, Ben, Charlie, and Diana have entered into ABCD partnership in January of 2015. I contributed cash of $5,000 in exchange for 25% interest in the partnership. Ben contributed property with a fair market value of $5..

  What rate of return are you earning on this policy

You just paid $360,000 for a policy that will pay you and your heirs $13,200 a year forever. What rate of return are you earning on this policy? 3.42 percent 3.96 percent 2.04 percent 3.54 percent 3.67 percent

  Find amount by which sinking fund is short of repaying loan

Alan borrows 18000 for eight years and agrees to make quarterly payments of 770. Each of these payments consists of interest for the just completed quarter and a deposit to a sinking fund that has a nominal interest rate of 6% convertible quarterly. ..

  Discuss the role of a third party intermediary

Discuss the role of a third party intermediary in an interest rate swap agreement. Describe the risks assumed by the intermediary. How does the intermediary potentially profit from this activity?

  Cost of preferred equity if floatation costs are ignored

The market price of the firm’s preferred stock is $116.00. The preferred pays a 12.1% annual dividend on its $100 par value. Floatation costs are $4 per share. What is the cost of preferred equity if floatation costs are ignored?

  Calculate the NPV and IRR without mitigation

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. Calculate the NPV and IRR with mitigation. Calculate the NPV and IRR without mit..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd